MGT308 International Marketing Report: Toyota Corolla Market Research

This report offers a comprehensive international marketing analysis of the Toyota Corolla, examining its market performance, situational analysis (SWOT and PESTEL), and market analysis of the European and US markets. The report explores the strategic matrix, competitive advantages, and entry strategies, followed by a detailed discussion of the marketing mix (product, price, place, promotion, people, process, and physical evidence). It further delves into resource planning, critical success factors, scenario analysis, financial projections, and concludes with key findings and recommendations for international market expansion. The report emphasizes Toyota's operational excellence, customer satisfaction, and the importance of team building, leadership, and supplier relationships in achieving success in the global market. The analysis provides insights into the company's objectives, performance, and the factors influencing its international marketing strategies.

Running head: MARKETING
International Marketing Management
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Executive Summary:
The report provides an insight into international market research of Toyota Corolla. The
model represents range of car manufactured by Toyota. The company has been one of the
renowned automobile makers in the international market place known for its efficiency and
technology. In fact, the success of the company has been a direct result of the operational
excellence. Toyota has considered the operational excellence into strategic weapon. Further, the
continuous success of Toyota in the implementation of the tools evolves from a profound
business philosophy that depends on the understanding of not only people but also human
motivation. The success of Toyota Corolla lies in the ability of cultivation of teams, leadership,
culture and devising strategy, building relationship with supplier and in maintaining learning
organization.
The report commences with an introduction of the product followed by its situational
analysis. The report also undertakes a market analysis of the product with respect to the
European and the market of United States. The report put forward discussion on the entry of the
product into the new market based on the market readiness. The report also maps the strategic
matrix of the product with market attractiveness, competitive advantage and choice of the entry
strategy. One is also able to get an idea about the marketing mix and the resource planning,
implementation control and the financial projections in relation to the product.

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Table of Contents
1.0 Introduction................................................................................................................................3
1.1 Background:...............................................................................................................................3
1.2 Objectives..................................................................................................................................3
1.3 Performance:..............................................................................................................................4
2.0 Situational Analysis:..................................................................................................................4
2.1 SWOT Analysis:........................................................................................................................4
2.2 PESTEL Analysis:.....................................................................................................................5
2.3 International Marketing Management Objective.......................................................................7
3.0 Market Analysis.........................................................................................................................9
3.1 Analysis of Two New Markets..................................................................................................9
3.2 Selection of a New Market Based on Market Readiness.........................................................11
3.3 Mapping Strategic Matrix in terms of:....................................................................................13
3.3.1 Analysis of Competitive Advantage.................................................................................13
3.3.2 Analysis of Market Attractiveness....................................................................................14
3.3.3 Establishment of the Choice of Strategic Entry................................................................14
3.4 Marketing Mix:........................................................................................................................16
3.4.1 Product:.............................................................................................................................16
3.4.2 Price..................................................................................................................................16
3.4.3 Place..................................................................................................................................16
3.4.4 Promotion..........................................................................................................................16
3.4.5 People................................................................................................................................16
3.4.6 Process:.............................................................................................................................16
3.4.7 Physical Evidence:............................................................................................................17
4.0 Resource Planning, Control and Implementation....................................................................17

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4.1 Critical Success Factors in terms of.........................................................................................17
4.1.1 Resource Allocation..........................................................................................................17
4.1.2 Scenario Analysis and Identification of Contingency Measures......................................19
4.1.3 Financial Projections.........................................................................................................20
5.0 Conclusion:..............................................................................................................................21
References:....................................................................................................................................22

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1.0 Introduction
1.1 Background:
The report aims at providing an overview of international marketing research for a global
product Toyota Corolla. It refers to a line of compact cars designed by Toyota. The car which
had been introduced in the year 1966 became one of the best selling cars across the world by the
year 1974. The sales of Corolla surpassed Volkswagen’s Beetle in the year 1997. In the year
2016, Toyota recorded sales of close to 44 million Corolla models across the twelve generations
(global.toyota, 2020). The series had however undergone major redesign. Toyota Corolla is
designed in Japan along with a twin known as Toyota Sprinter. The earlier model had a rear
wheel drive while the later ones were designed with a front wheel drive. There were however
four versions of wheel drive. The competitors of Corolla had been Nissan Sunny, Honda Civic
and the Mitsubishi Lancer that were introduced in the same year. According to Toyota’s engine
and chassis code, the chassis designation has been marked as ‘E’.
1.2 Objectives:
The product had the objective of (global.toyota, 2020):
 To increase the customer satisfaction through putting across higher service quality and
the value for the money.
 Put across an aggressive customer satisfaction program in relation to the car models that
helps in building customer relationship.
 To ensure maintenance of a substantial share of Toyota Corolla in the market where it
operates.
 To ensure up gradation of the society along with serving the nation.

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 Follow an ethical approach towards the customers and foster needs of customers.
1.3 Performance:
As far as the performance is concerned, Toyota Corolla has customary front wheel drive.
It also has a standard steering and is able to control the body motions. It provides a comfortable
ride quality in most of the situations. Besides, it also had an engine comprising of four cylinder
and capacity of 1.8 liter that produced close to 139 horsepower(cars.usnews.com, 2020). It also
has a standard and automatic continuous variable transmission (CVT). The estimated EPA
standard for the car is 30 mpg in the city and close to 38 mpg on highway that is considered
above the average.
2.0 Situational Analysis:
2.1 SWOT Analysis:
Strength
1. The car scored high on the aspect of
reliability and performance
2. Toyota Corolla generated close to 40 million
sales in a particular year (Lavasani, Jin & Du,
2016).
3. The car had a dynamic and elegant look with
chrome strips.
4. Comes with sufficient shoulder room,
headroom and legroom.
5. Have supportive features that led to a richer
driving experience.
6. Enabled with cruise control that makes
highway driving easier.
Weakness
1. Lack of capability in garnering volumes due
to intense competition
2. Available in the middle and upper segment
only and hence is expensive.
3. The changed designs of the later versions
did not sync with the customer choice.
4. The design of the Toyota Corolla models is
increasingly global than local
Opportunities Threats

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1. Expansion of the hatchback model for
accommodating the competition.
2. Have collaborations with the entities of the
automobile business
3. Augment the distribution and the
distribution network.
1. Strong competition in the market
2. Presence of competition leads to the offering
of the innovative features at a lower price.
3. Newer entrants within the same segment
with lower price and better features.
4. Demand for the hybrid car.
2.2 PESTEL Analysis:
Political Factors 1. The major markets ensure political stability
thereby acting as opportunity of growth for
Toyota through minimum political tension .
2. The availability of the free trade agreements
involving Japan and the other countries puts
across opportunities for enhanced penetration
in the market (Gilligan & Hird, 2013).
3. The governmental support in relation to the
ecofriendly products acts as the opportunity for
the firm in improving the products for
satisfying or exceeding the expectations of the
environment.

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Economic Factors 1. The lower rate of Yen in comparison to the
dollars provides an opportunity to Toyota in
improving the exports of Toyota corolla from
Japan
2. The steady growth of the US economy
provides an aid for the business to expand in
US which is considered as its second biggest
market (Chowdhury, 2014).
3. Fast growth of the developing countries puts
across an opportunity for the firm in improving
the revenue based on such markets.
Social Factors 1. Enhanced interest in the hybrid cars and
electric cars provides opportunities to Toyota
to put across more products for satisfaction of
customer interest.
2. Widening of wealth gap acts as threat to
Toyota as it correspond to the diminishing
middle class who serves as the key revenue
source for Toyota.
Technological Factors 1. Toyota has opportunity of improving the e-
commerce capabilities or can exploit the third
party for the selling the spare parts of Toyota
Corolla.
2. The trend of the mobile technology will
allow Toyota in enhancing the mobile apps for
increasing the customer loyalty and
engagement.
3. The emergence of cybercrime is a threat to
the company and Toyota should undertake
measures to immediately report it.
Environmental Factors 1. The change in climate puts across

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opportunities to Toyota for producing
environment friendly products.
2. The declining reserves of the global oil puts
forward an opportunity for Toyota to produce
electric cars that has higher level of fuel
efficiency.
3. The higher emphasis on the business
sustainability will allow Toyota to enhance
sustainability performance via improvements
in efficiency of the business process
Legal Factors 1. The improvement in the intellectual property
law allows Toyota to take up growth with
hardly any concern of infringement since
government have plans towards improving the
protection of intellectual property.
2. The environmental law also acts as
opportunity for Toyota in providing higher
quality product in alignment with the laws.
3. The increasingly complex nature of the
consumer laws allows the company in putting
across more satisfactory and safer products for
exceeding or fulfilling the consumer laws.
2.3 International Marketing Management Objective
The international marketing management objectives of Toyota Corolla Comprises of five
steps (Czinkota & Ronkainen, 2013):

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Figure 1: Diagrammatic Representation of the International Marketing Management Objective
Source: (Gilligan & Hird, 2013).
1. Analysis of Marketing Opportunities: This involves analysis of the global marketing
opportunities for identification of unfulfilled or under fulfilled needs that Toyota can satisfy
through its innovative models of cars. The product can however undergo modifications for
satisfying the identified needs.
2. Selection of the Target Market: This step helps in selecting the international
customers that Toyota Corolla likes to target. The step also involve identification of the potential
buyers, demand for forecasting and measurement, market targeting and segmentation along with
positing of the market (Aghdaie & Alimardani, 2015).
3. Potential Customers: In order to derive the best price from the buyer, the firm should
optimize all its activities, resource utilization and the efforts undertaken. This enables Toyota

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Corolla in adopting an appropriate and coherent strategy or logic for directing and controlling
alignment, optimization and coordination of the business and the marketing efforts (Hoque et al.
2013).
4. Development of International Marketing Mix: This involves the development of the
international marketing mix, its product, price, place and promotion. The marketing mix will
enable Toyota in identifying the key areas for the development of well-coordinated strategy for
marketing. It will help Toyota in understanding that for creation of a stronger marketing impact,
it needed to develop accurate programs in the four areas thereby ensuring coordination and
conformity with one another in delivering clear image to target market in relation to products
offered (Tan & Sousa, 2013).
5. Accurate Implementation of Marketing Programs: Development of an appropriate
marketing program is not the only criteria for attaining success, it is also necessary for a firm to
properly manage the efforts of international marketing.
3.0 Market Analysis
3.1 Analysis of Two New Markets
The two markets analyzed here are the European and the US Market. The analysis is
mentioned as follows:
1. European Market: The European continent is geographically divided into the
Western and Eastern Europe (McCormick & Kautto, 2013). Some of the eastern countries have
greater potential than the west. Japanese companies mostly have the tendency to move towards
the east for taking advantage of the lower cost of wage and flexible markets.

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Political Risk:
 The structures of the government are weak and hence requires reforms
 The tax system require a higher level of social contribution
 Higher public debt prompts an increase in the tax in the medium term.
 Government procedures are quite lower in registering the new business.
Financial/ Economic Risk:
 Decrease in the rate of inflation. The rate of inflation reduced to 0.1 percent in the year
2015 from 2.0 % in the year 2016 (Niemann & Ioannou, 2015). It was however found
that the annual rate of inflation rose to 1.7 percent in the year 2017 from 1.9 percent in
the year 2018.
Cultural Adaptation:
In Europe, the work culture is more inclined towards team work and work packages.
There is clear distribution of power, limited cooperation and clearly defined roles and the
responsibilities.
Trade Agreements
As far as the trade agreements are concerned, Japan and European members has been
members of European Union–Japan Economic Partnership Agreement (EPA)(Wallace,
2017).According to the agreement, European Union is supposed to reduce the duties on the car
imports from Japan by 10 percent. This would increase the GDP by 1 percent.
2. US Market: